MEG Energy Corp

MEG-T

Analysis and Opinions about MEG-T

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Opinion
Expert
COMMENT
COMMENT
June 29, 2018

Heavy oil producer, similar to CNQ. Beaten down with lower oil prices, because of their large debt. If you think oil is going higher than $80, then there’s an opportunity there as they work through their debt. No dividend.

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Heavy oil producer, similar to CNQ. Beaten down with lower oil prices, because of their large debt. If you think oil is going higher than $80, then there’s an opportunity there as they work through their debt. No dividend.

TOP PICK
TOP PICK
June 11, 2018

A huge torque to energy prices. He is forecasting $80 oil. This offers the highest leverage to this price. They have fully funded a production ramp in excess of 110 barrels per day. After that they can harvest free cash flow and pay down debt. They have a 50 year reserve body. They could theoretically then pay you a 15% dividend for 50 years. (Analysts’ target: $9.86).

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A huge torque to energy prices. He is forecasting $80 oil. This offers the highest leverage to this price. They have fully funded a production ramp in excess of 110 barrels per day. After that they can harvest free cash flow and pay down debt. They have a 50 year reserve body. They could theoretically then pay you a 15% dividend for 50 years. (Analysts’ target: $9.86).

COMMENT
COMMENT
January 2, 2018

This is not one you need to jump in at this stage. It looks very, very toppy where it currently is. It will probably be a news driven, commodity driven type play. If he owned it, he wouldn't let it break $5.

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MEG Energy Corp (MEG-T)
January 2, 2018

This is not one you need to jump in at this stage. It looks very, very toppy where it currently is. It will probably be a news driven, commodity driven type play. If he owned it, he wouldn't let it break $5.

COMMENT
COMMENT
October 25, 2017

Will these types of companies be viable in a low oil price environment? This one has proved that it is going to weather the storm, so if you are a high-risk investor but want high returns, then he would just temper the amount you are investing into companies like this.

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MEG Energy Corp (MEG-T)
October 25, 2017

Will these types of companies be viable in a low oil price environment? This one has proved that it is going to weather the storm, so if you are a high-risk investor but want high returns, then he would just temper the amount you are investing into companies like this.

DON'T BUY
DON'T BUY
September 15, 2017

If you believe in significantly higher oil prices, this stock will go up several fold. If not, they are kind of stuck in the mud. They have excess financial leverage and got caught off side by the selloff in oil. There is not a lot they can do to get themselves out of this, other than a material increase in the price of oil. There are better opportunities elsewhere.

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MEG Energy Corp (MEG-T)
September 15, 2017

If you believe in significantly higher oil prices, this stock will go up several fold. If not, they are kind of stuck in the mud. They have excess financial leverage and got caught off side by the selloff in oil. There is not a lot they can do to get themselves out of this, other than a material increase in the price of oil. There are better opportunities elsewhere.

DON'T BUY
DON'T BUY
June 20, 2017

Like all the big Canadian oil companies that are involved in heavy oil, this is not a Buy. Heavy oil is the most expensive oil on earth to produce. With shale oil coming out at $50-$60 a barrel, it will be a long time before the economies are there for the big oil sand producers to make money. Companies like this are impaired against Canadian Natural Resources (CNQ-T) and Suncor (SU-T) which have huge economies of scale.

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Like all the big Canadian oil companies that are involved in heavy oil, this is not a Buy. Heavy oil is the most expensive oil on earth to produce. With shale oil coming out at $50-$60 a barrel, it will be a long time before the economies are there for the big oil sand producers to make money. Companies like this are impaired against Canadian Natural Resources (CNQ-T) and Suncor (SU-T) which have huge economies of scale.

DON'T BUY
DON'T BUY
May 23, 2017

He would rather go to a casino than put money into this company. This is like your super-duper high beta bet on oil. They just have far too much debt.

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He would rather go to a casino than put money into this company. This is like your super-duper high beta bet on oil. They just have far too much debt.

WATCH
WATCH
April 17, 2017

Look at a 5 year chart. It looks like there is some stability and that it is turning around, but there are still question marks in his mind. You need to take out the 2016 highs.

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MEG Energy Corp (MEG-T)
April 17, 2017

Look at a 5 year chart. It looks like there is some stability and that it is turning around, but there are still question marks in his mind. You need to take out the 2016 highs.

DON'T BUY
DON'T BUY
February 10, 2017

An oil sands producer that had a number of problems over the years with their main project. It seems things are starting to turn around on the operation side, but he doesn’t see a great upside. If he was looking for an oil sands producer, this would not be his 1st choice.

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MEG Energy Corp (MEG-T)
February 10, 2017

An oil sands producer that had a number of problems over the years with their main project. It seems things are starting to turn around on the operation side, but he doesn’t see a great upside. If he was looking for an oil sands producer, this would not be his 1st choice.

DON'T BUY
DON'T BUY
December 6, 2016

He wouldn’t look at something like this. They have a significant debt burden. Based on where oil prices are, for an oil sands producer on a debt to cash flow basis, the numbers get huge. Doesn’t think that they have any near-term issues of being off-side on covenants or issues with refinancing their debt. This is not something he would be looking at.

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MEG Energy Corp (MEG-T)
December 6, 2016

He wouldn’t look at something like this. They have a significant debt burden. Based on where oil prices are, for an oil sands producer on a debt to cash flow basis, the numbers get huge. Doesn’t think that they have any near-term issues of being off-side on covenants or issues with refinancing their debt. This is not something he would be looking at.

DON'T BUY
DON'T BUY
October 7, 2016

(Market Call Minute.) Debt is simply too high. You have to be a believer in $70+ to think that this would be a going concern. Interest expense takes up so much of their cash flow, you are hampered by how much money has to go to the bank rather than going into the field.

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MEG Energy Corp (MEG-T)
October 7, 2016

(Market Call Minute.) Debt is simply too high. You have to be a believer in $70+ to think that this would be a going concern. Interest expense takes up so much of their cash flow, you are hampered by how much money has to go to the bank rather than going into the field.

COMMENT
COMMENT
September 26, 2016

They are well respected, but leveraged. Analysts are expecting oil and gas to go up in the future, which he does not agree with. They will have losses for the next couple of years. It looks like there is a base is forming.

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MEG Energy Corp (MEG-T)
September 26, 2016

They are well respected, but leveraged. Analysts are expecting oil and gas to go up in the future, which he does not agree with. They will have losses for the next couple of years. It looks like there is a base is forming.

COMMENT
COMMENT
May 2, 2016

It is off its lows. There is probably a lot of leverage.

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It is off its lows. There is probably a lot of leverage.

DON'T BUY
DON'T BUY
March 17, 2016

Doesn’t like this. An oil sands player. Have about $5.3 billion worth of debt on the balance sheet. Their asset is quite good, but not in this oil price environment. Going through a process of trying to rationalize certain key strategic assets, namely a 50% stake in an access pipeline. Looking at it on a debt to cash flow ratio, it looks like 65X debt to cash flow with where oil prices are right now.

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MEG Energy Corp (MEG-T)
March 17, 2016

Doesn’t like this. An oil sands player. Have about $5.3 billion worth of debt on the balance sheet. Their asset is quite good, but not in this oil price environment. Going through a process of trying to rationalize certain key strategic assets, namely a 50% stake in an access pipeline. Looking at it on a debt to cash flow ratio, it looks like 65X debt to cash flow with where oil prices are right now.

HOLD
HOLD
February 23, 2016

Of all of the most overleveraged companies that have no cash flow today, this would be at the top of the list. Have a negative netback of around $5 a barrel, so literally they burn $5 for every barrel they produce, but there are technical reasons why they would not want to slow down production. They are relying on the midstream sale of a pipeline that should be closing by the end of Q2. There is also an enormous Short position in the stock. This is beyond his comfort level, but if you own, he wouldn’t sell, based on his view of oil.

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MEG Energy Corp (MEG-T)
February 23, 2016

Of all of the most overleveraged companies that have no cash flow today, this would be at the top of the list. Have a negative netback of around $5 a barrel, so literally they burn $5 for every barrel they produce, but there are technical reasons why they would not want to slow down production. They are relying on the midstream sale of a pipeline that should be closing by the end of Q2. There is also an enormous Short position in the stock. This is beyond his comfort level, but if you own, he wouldn’t sell, based on his view of oil.

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